European Union’s Tax Transparency Rules for Digital Platforms

European Union’s Tax Transparency Rules for Digital Platforms

Multidimension desk:
DAC7, or the obligations for platform operators, is a set of rules that applies across the European Union from January 1, 2023. These new rules aim to ensure tax transparency for digital platforms such as Uber or Deliveroo. These platforms are required to report certain information about their partners who provide services (such as meal delivery drivers, passenger transportation (VTC)) or food vendors (such as restaurants) to tax authorities. The platforms will transmit the information once a year, meaning for the year 2023, they will transmit the information in 2024, the information from 2024 in 2025, and so on.

Transactions carried out before 2023 will not be covered by DAC7. Individual entrepreneurs and legal entities (such as companies, businesses) are affected.

The following information is provided for Uber (this list also applies to Deliveroo and others)

– First and last name
– Main address
– Tax Identification Number (TIN)
– Value-added tax identification number (if available)
– Date of birth
– Bank account number you use to receive payments through the Uber platform
– Name of the account holder if you do not use your own bank account to perform transactions on the Uber platform
– Number of transactions you have carried out on the Uber platform in each quarter
– Total payments you have received through the Uber platform in each quarter; the commission Uber has charged you in each quarter (including any fees and taxes).

– Company name
– Main address
– Tax Identification Number (TIN)
– Value-added tax identification number (if available)
– Company registration number
– Bank account number you use to receive payments through Uber platform
– Name of the account holder if you do not use your own bank account to make transactions on Uber platform
– Number of transactions you have carried out on the Uber platform in each quarter
– Total payments you have received through Uber platform in each quarter; the commission that Uber has charged you in each quarter (including any fees and taxes).

You don’t have to do anything, the platforms will take care of transmitting the information as they have all your information. However, if any information is missing, they will contact you to gather it. If you don’t provide this information, these platforms will be forced to freeze your accounts.

Regarding the reliability of the information you provided to Uber and other companies, they will rely on the information provided during registration and also on the documents submitted (ID, Urssaf certificate, RIB, KBIS, etc.)

Although the use of information retrieved by tax authorities varies depending on the EU member state in which you operate your business, the main objective is still to verify your income statements. Therefore, it is wiser to declare the exact amounts of payments received from these platforms.

New annual income ceiling to apply for HLM in 2023

New annual income ceiling to apply for HLM in 2023

Multidimension desk:
To obtain low-cost public housing (HLM), the applicant must meet the maximum annual income ceiling limit. It depends on the type of housing, its location and the number of family members living in the housing facility

Updated each year, the income ceilings for 2023 have been raised by 3.5% in metropolitan France by an order published in the Journal Officiel on January 1, 2023. The new income ceiling limits are applicable from January 1 onward.

The annual income is the reference tax income of the year n-2.
If an applicant applies for social housing in 2023, the reference of income (référence de revenu) will be the income of 2021, as shown on the tax notice of 2022.
Annual income ceiling limits (in euros)

To know about DALO and Action Logement, read our article published previously:

How to apply for social housing (HLM)

Revaluation of CAF benefits from 1st April

Revaluation of CAF benefits from 1st April

Multidimension desk:
As every year, from 1st April, the RSA, family allowances and the activity bonus (prime d’activité) will be increased by 1.6%. This revaluation is calculated on the basis of the annual evolution of the consumer price excluding tobacco. In addition, an exceptional increase of 4% in CAF benefits had already taken place in July 2022.

A category-wise table of increased RSA amounts is given below that beneficiaries can compare according to their financial situation.

Family Allowance increase table effective from 1st April:

Pension reform in France: face-off between the Government and the Opposition

Pension reform in France: face-off between the Government and the Opposition

Multidimension desk:
As planned in the program of President Macron during his second term, the pension reform project is presented on January 10, 2023. The government announced that the legal retirement age will be pushed to 64 years from 62 in order to be in balance with other European countries. For example, the standard retirement age in Germany is 65 years and 7 months. The main logic behind the reform is an aging population base with increased longevity which is surmounting pressure on pension funds which will dry up in future in absence of necessary reform.

The retirement age will decline by 3 months per year and will reach 63 years at the end of Emmanuel Macron’s five-year term and 64 years in 2030. According to Prime Minister Elisabeth Borne, in order to receive a full pension, one has to work for 43 years or 172 quarters of contributions from 2027.

However, for those who will not be able to contribute for 43 years, the full retirement age (without discount) remains at 67.

In addition, the minimum pension rate will be raised to 85% of the SMIC (minimum salary), an increase of 100€, as promised. This is equivalent to 1200€ of pension per month. As this reform is indexed to the SMIC, the pension will evolve at the same time as the SMIC. Both new and old pensioners will be able to benefit from this revaluation.

The different existing pension schemes will be closed and the government will set up a universal pension system, based on points. New recruits will be affiliated to the general pension scheme.

Those who started working early will be able to retire earlier. For example, people who started working before they were 16 will retire at 58, those who started working at 18 will retire at 60 and those who started working before 20 will retire at 62.

In addition, this reform will take into account arduous work, the carrying of heavy loads and others, which will benefit from a financing of leave for professional retraining.

Victims of an accident at work or an occupational disease will be able to retire due to disability at 60 years of age (compared to 62 years of age in the initial draft). Disabled workers will be able to retire from the age of 55.

This reform is very controversial because it would lead to a decrease in the number of jobs available, especially for young people, and to job insecurity for those who are already unemployed, and would reinforce gender inequalities. We know that women often have a chopped up career, so they will have to work longer to avail full retirement benefits. However, as women do not receive the same salary as men, their retirement pension will also be lower.

This will worsen the condition of the most precarious and those who started working early and whose life expectancy is lower than the rest of the population.

On January 19, the first national strike against this reform took place, followed by others during January, February and March. According to all the polls, this reform is particularly unpopular with almost 70% of the population saying they are against it.

On March 16, the Senate (upper house of the parliament) passed the reform with 193 votes for, 114 against, a bill amended as a result of a consensus between the right (the Republicans and the centrist) and the Macronist majority on several issues such as long careers, creation of an end-of-career contract for the recruitment of employees aged 60 or more (CDI sénior), premium for mothers in charge of family, although the main measure of raising the legal retirement age to 64 years remains in place.

Since the government is not sure of the number of votes in favor of the reform in the National Assembly (Lower house of the parliament), it has announced the use of Article 49.3 of the Constitution to pass the reform without going through the vote of the parliament members (MPs) on the same day.

The French people were outraged by this news, which goes against the principles of democracy. As a result, the strike of Thursday, March 16, which started as a peaceful strike, degenerated. The demonstrators invaded the streets of Paris, garbage cans were overturned and burned as well as many cars. The police tried to stop the demonstrators and more than 200 people were arrested. The unions have called for further mobilisations. The strikes against the reform, as well as the strikes of transport and garbage collectors continued the following days.

On March 17, two no confidence motions, the first of which is transpartisan tabled by the group Libertés, Indépendants, Outre-mer et Territoires (LIOT) and the second tabled by the Rassemblement national (party of Marine Le Pen), to make the government back down on its decision. Those will be studied on Monday, March 20 at 4 pm in the National Assembly. If none of the no confidence motions is voted by an absolute majority of the MPs, i.e. 287 votes, the text will be considered as definitively adopted without a vote.

The president of the Republicans, Eric Ciotti, announced that his party MPs will not vote on any of the no confidence motions,  but their votes are necessary to achieve a majority (at least thirty). According to the president of the RN, Jordan Bardella, the adoption of no confidence motion is “possible if the opposition, i.e. the NUPES (alliance of left parties and the ecologists, which includes the ‘Unsubmissive France’ of Jean-Luc Mélenchon) and the RN, come together”.

Meanwhile, on Saturday, March 18, another demonstration took place against the reform and tensions broke out in different French cities such as Nantes, Brest and Bordeaux. In Paris, certain areas were restricted to rallies and many metro stations were closed even though calls for demonstrations were made on social networks the day before.

Another national strike day is planned for Thursday 23 March.


Latest info:

After the rejection of both of the no confidence motions against the government, the pension reform was automatically adopted Monday evening.

The transpartisan no confidence motion (LIOT) received the support of 278 MPs, only nine less than the absolute majority (287 votes). At least 22 Republican MPs have voted in favour of the motion disobeying party’s decision.

The oppositions still have two tools to block the pension reform: the establishment of a shared initiative referendum (RIP) and an appeal to the Constitutional Council.

The adoption of the pension reform has triggered stronger protests all over France. There are many incidents of violence and arrests of demonstrators by the police.

President Emmanuel Macron will address the French population on Wednesday at 1:00 p.m. live on TF1 and France 2.

A Summary of the Immigration Bill 2023: Part 4

A Summary of the Immigration Bill 2023: Part 4

Multidimension desk:

Strengthening the expulsion process of convicted foreign nationals from French territory

The bill relaxes the almost absolute protection against expulsion enjoyed by certain convicted foreign nationals who have been residing in France for a long time or who have personal and family ties (for example, parent of a French or foreign child who entered France before the age of 13 ). These foreigners can now be expelled in case of terrorism, harm to the fundamental interests of the State or incitement to hatred or discrimination. In the future, they may also be expelled in the event of a final conviction for a crime or misdemeanor punishable by ten years or more in prison or five years in reiteration (for example for murder or rape). In the same way, the text facilitates the pronouncement by the judges of the additional sentence of banishment from French territory (crime or misdemeanor punishable by more than ten years in prison, serious violence against the police, etc.).

The text also reduces protections against decisions to impose an obligation to leave French territory (OQTF) in cases of serious threat to public order, even when the foreigners concerned have ties to France (for example, foreigners who have been legal residents for more than 20 years or foreigners who have been spouses of French citizens for more than three years).

Reform concerning foreign minors under 16 years of age

The ban on placing foreign minors under the age of 16 in an administrative detention center (CRA), including when they accompany adults. The government is implementing the case law of the European Court of Human Rights (ECHR) on the subject. On the other hand, the conditions of detention of foreign minors aged 16 to 18 have not changed. The latter can always be placed in an CRA when they are accompanied by an adult foreigner.

Measures to fight against irregular immigration

Other measures to fight against irregular immigration complete the text: aggravation of the repression against smugglers and “sleeping merchants”, authorization of the use of coercion for the taking of the fingerprints of asylum seekers at the border, possible visual inspection by the border police of private cars in the “border zone” (and no longer only of vehicles with more than nine seats)…